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SCSB lands Port Kembla prize

LNG import scheme could meet 70%-plus of state's gas demand

SCSB, a joint venture of Spiecapag and Soletanche Bachy, has won the contract to construct the pipeline and wharf facility for Australian Industrial Energy’s Port Kembla liquefied natural gas floating storage and regasification unit in Australia.

“The Port Kembla Gas Terminal is progressing strongly and is attracting the best of the best on all fronts,” AIE project director Keith Walker said.

“Our selection of SCSB as prime contractor is no exception and we look forward to them bringing their expertise together with the capabilities of the Illawarra region to deliver this most important of projects.”

The AIE consortium partners last year signed an agreement with Norwegian contractor Hoegh to supply the FSRU, which is intended to handle around 1.8 million tonnes per annum of LNG.

Then AIE last month lined up its first customer for the imported volumes – utility EnergyAustralia has committed to purchasing at least 15 petajoules per annum of LNG from 2021.

Design work is already under way for the onshore construction phase, which will kick off just as soon as AIE takes the final investment decision on the project, which is expected before year-end.

This construction work will include dredging in the harbour, building a wharf within the existing Port Kembla dock area, and installing the six-kilometre pipeline to connect the facility to the New South Wales east coast gas network at Cringila.

John Walsh, Spiecapag’s managing director, said: “We’re very pleased to be working on such a strategically important project for New South Wales.

“We look forward to exploring opportunities for local contractors to also play a part in Australia’s first ever LNG import terminal once we start construction in the second half of the year.”

The Port Kembla LNG import project will have the capacity to supply more than 70% of NSW’s natural gas demand.

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